Tax | Income tax | Administration and enforcement
Tax Court judge partially allowed taxpayer’s appeals from reassessments. Parties made submissions on costs. No costs awarded. Minister of National Revenue had success in ultimate result, but it was due to one issue. Given taxpayer’s success on virtually all other issues, result did not favour cost award to Minister. Factors of volume, importance of issues and complexity of issues, considered on issue-by-issue basis, did not provide basis to order costs against taxpayer. Equitable result was for each side to bear its costs. Minister rejected taxpayer’s settlement offer, which was true compromise offer made on principled basis. Minister made counteroffer that did not meet requirements of R. 147(3.2) of Tax Court of Canada Rules (General Procedure) because it was not made at least 90 days before start of hearing. Counteroffer, while mirroring ultimate outcome sought, was complete surrender from taxpayer on central issue. Minister’s concession on characterization of foreign exchange gains and losses was not compromise or good faith attempt to settle, given relative insignificance of issue. There was no merit in awarding costs on basis of Minister’s counteroffer. Review of factors in R. 147 of Rules did not support award of costs to Minister.
Loblaw Financial Holdings Inc. v. The Queen (2018), 2018 CarswellNat 8324, 2018 TCC 263, Campbell J. Miller J. (T.C.C. [General Procedure]); additional reasons (2018), 2018 CarswellNat 11076, 2018 CarswellNat 5099, 2018 TCC 182, 2018 CCI 182, Campbell J. Miller J. (T.C.C. [General Procedure]).
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